US equities ended a volatile week on a higher note Friday as investors struggled to determine the likely impact of the growing trade war between the US and China on global economy.

The Nasdaq Composite rose 2% to 16,724.5 and the S&P 500 added 1.8% to 5,363.4. The Dow Jones Industrial Average was 1.6% higher at 40,212.7, with all three major gauges rebounding from early declines as the dollar and bond yields steadied. All sectors advanced, led by materials and technology.

US Treasury yields closed higher, but some fell back from their intraday highs. The 10-year closed 9 basis points higher at 4.49%, off an earlier high around 5.59%, but the yield for two-year Treasuries increased 10 basis points to 3.95%.

China overnight raised its tariff on US goods to 125%, with the 41-basis-point increase to its prior rate slated, to begin this weekend in response President Donald Trump on Thursday boosting US import duties on Chinese goods to 145%.

There were signs tariff concerns are beginning to spill over into the broader US economy. The University of Michigan's index of consumer sentiment fell to a preliminary April reading of 50.8, down from the final 57.0 print in March and almost doubling the drop to 53.5 reading experts in a Bloomberg survey expected.

A think tank tracking the automobile industry said on Friday a 25% tariff on vehicles and auto parts imported from Canada and Mexico will likely add $41.9 billion in costs for the "Big 3" US automakers, namely General Motors (GM), Ford (F) and Stellantis (STLA).

GM, meanwhile, will temporarily halt operations at a plant in Ontario that makes electric vans although the shutdown is tied to slowing customer demand rather than tariffs, the company reportedly said. GM shares were fractionally lower in regular trading.

There was upbeat news on inflation, however. The US Producer Price Index fell 0.4% during March, compared with forecasts expecting a 0.2% increase. Excluding food and energy prices, core PPI slid 0.1%, the US Bureau of Labor Statistics said.

In company news, JPMorgan Chase (JPM), Morgan Stanley (MS) and Wells Fargo (WFC) all reported improved Q1 earnings, topping Wall Street estimates. Wells Fargo's revenue lagged the analyst consensus and the bank's stock closed 1% lower. JPMorgan was 4% higher and Morgan Stanley was over 1% up.

Texas Instruments (TXN) shares fell 5.8%, posting the steepest decline on the S&P 500, after Chinese officials said semiconductor companies with fabrication facilities in the US would be "liable for tariff rates of 84% or higher" but the state-backed China Semiconductor Industry Association exempted several chipmakers, including Nvidia (NVDA) and Qualcomm (QCOM) who outsource their production.

West Texas Intermediate crude oil settled 2.3% higher at $61.50 per barrel. Gold futures rose 2.1% to $3,248.80 per ounce, and silver was up 4.5% up to $32.15.